Stock Market Technical Indicators & Analysis
With the GMI at 1 on Monday, this marks two days below 3 and a new Sell signal. The QQQ short term trend also turned down. IBD signaled on Tuesday that the market is now in a correction. I am almost sold out of all of my long positions and hold some SQQQ. Time to watch from the sidelines. This daily chart of the QQQ shows the recent GMI buy and sell signals. Click on chart to enlarge.
The GMI registered 2 after Friday’s close and will likely be 2 or less again on Monday, triggering a GMI Sell signal. If so, I will close out my few longs and accumulate a leveraged inverse ETF (SQQQ). The T2108 is at 36% and has a long way to fall before our markets are at the level where declines typically end. (See weekly chart below.)
I am very concerned that many of the world’s markets are in free fall and we tend to pretend that the U.S. market is immune from the fall-out. Do we really think that the U.S. economy exists in its own cocoon? Take a look at the recent weekly charts of some of the foreign ETF’s:
TRF: Russia/East Europe:
EWZ: Brazil:
EWG: Germany:
EWC: Canada
EWW: Mexico:
USX–X: China:
CEE: Central Europe, Russia, Turkey:
Are we worried yet? Or maybe it’s just a benign and temporary oil price precipitated scare….. (would you like to buy a bridge?) I’m not going to wait around to find out. (I have told you I trade like a chicken.)
QQQ, DIA and SPY are all on support. Friday will tell the resolution. Meanwhile, in the midst of all of this market volatility, ALDR had a green line break-out to an all-time high on Thursday.
